Educational expense reimbursement

Forum|Forum|3 years ago
February 7, 2023
1 reply
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Hi:

My company provided $7,500 educational reimbursement . In the TurboTax software where it asks for "Employer provided Assistance" should I enter $7,500 or $5,250 (IRS allowed tax free amount) or $2,250 (Difference between $7,500 - $5,250 = $2, 250)?

They have already included the $7,500 in W2 and it was taxed. I actually got $6,691.38 given to me after taxes withheld,

Regards,

Giri

Regards,

Giri

Best answer by Hal_Al

Hi Hal:

I got confirmation today that in W2 Box 1 my employer included only $2,250 which is the difference between the educational reimbursement of 7500 and IRS allowed $5,250.

Hence, just want to confirm in TurboTax software where it asks for "Employer provided Assistance" I need to enter $5,250?

Again, thank you.

Regards,

Giri

Q. In TurboTax software where it asks for "Employer provided Assistance" I need to enter $5,250?

A. Yes.

Vanessa A

If the entire amount was included in box 1 of your W2 as taxable federal wages, then you would not include any of it as Employer Provided Assistance. Since you were taxed on the full amount, it is as though you paid it with your own money instead of tax free money. This means, if you other wise qualify, you are still eligible for education credits for the amount paid.

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